Leadership Styles in Organizations: Htoo Group Case Study Report

This report delves into the realm of leadership styles within organizations, specifically examining the transactional and transformational leadership models. The research focuses on the Htoo Group of Companies, a Burmese holding company, and investigates the impact of these leadership styles on employee performance, job satisfaction, and overall organizational effectiveness. The study explores the significance of leadership in the modern business environment, highlighting the importance of creating a positive work environment and motivating employees to achieve organizational goals. The methodology involves a comprehensive literature review, survey analysis using the MLQ-5X questionnaire, and various statistical analyses to determine which leadership style is more relevant and effective for the Htoo Group. The report also includes a detailed examination of the research background, aims, objectives, and research questions, along with a discussion of the findings, conclusions, and recommendations for the organization. The report aims to provide insights into the advantages and limitations of each leadership style and to suggest strategies for optimizing leadership practices within the Htoo Group of Companies to improve employee satisfaction and overall organizational performance.

Running head: LEADERSHIP STYLES IN ORGANIZATIONS
Leadership Styles in Organizations
Name of the Student
Name of the University
Author Note

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Acknowledgement:
I like to thanks my professor my family and friends, who support me to do this research work
efficiently through providing me proper guidance and support. Without their cooperation, it
would be difficult for me to conduct the entire analysis. For preparing the assignments, I had
taken help and guidance from the respected persons who deserves my deepest gratitude. I
would also like to show my gratitude to my professors for completing my assignments who
directly and indirectly guided me in writing this assignments.

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Abstract:
The global commercial and organizational framework had undergone considerable changes
and dynamics over the last few decades, owing to international phenomena of immense
significance. In this context, with the increasing dynamics in the commercial operational
framework, the concept of leadership in the business organizations has also evolved
significantly, with the importance of the same being rising among the participants of the
global business environment. The presence of a good leadership leads to creation of morale
and inspiration for the employees, thereby motivating them to perform better. There are
different leadership styles, recognised in the contemporary business framework, of which the
increasingly popular styles are those of transactional and transformational styles. The study
tries to analyse which form of leadership, between transactional and transformational, is more
relevant and effective for HtooGroup of Companies. The survey analysis considers MLQ-5X
and comes to know that transactional leaders impact more on employees in this company
compare to transformational leaders.

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Table of Contents
Chapter 1: INTRODUCTION....................................................................................................6
1.1 Introduction......................................................................................................................6
1.2 Research Background.......................................................................................................7
1.3 Significance of the Research............................................................................................9
1.4 Research Aims...............................................................................................................10
1.5 Research Objectives.......................................................................................................11
1.6 Research Questions........................................................................................................11
1.7 Research Hypothesis:.....................................................................................................12
1.8 Research Structure.........................................................................................................12
CHAPTER 2: LITERATURE REVIEW.................................................................................15
2.1 Introduction........................................................................................................................15
2.2 Significance of leadership in an organization....................................................................15
2.3 Overview of the transformational leadership and transactional leadership style...............18
2.4 Determination of which leadership style is better relating to the HGC employees job
performance and satisfaction....................................................................................................22
2.5 Importance of job satisfaction:...........................................................................................26
2.6 Transformational and transactional leadership style applied by HGC leaders on their
employee’s job satisfaction:.....................................................................................................28
2.7 Significance of job performance:.......................................................................................29
2.8 Impact of transformational as well as transactional leadership style used by HGC leaders
regarding job performance of employees:................................................................................32

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2.9 Relation between transformational leadership and satisfaction of leaders with job
performance and leader in HGC:.............................................................................................34
Chapter 3: REASERCH METHEDOLOGY...........................................................................36
3.1 Introduction:...................................................................................................................36
3.2 Method Outline:.............................................................................................................36
3.3 Research Onion:.............................................................................................................37
3.4 Research Philosophy:.....................................................................................................37
3.5 Research Approach:.......................................................................................................38
3.6 Research Design:............................................................................................................38
3.7 Data Collection:.............................................................................................................39
3.8 Sampling Method and Sample Size:..............................................................................40
3.9 Data Analysis Plan:........................................................................................................41
3.10 Ethical Consideration:..................................................................................................41
3.11 Research validation along with data reliability:...........................................................42
3.12 Limitation of the study:................................................................................................42
3.13 Time Frame:.................................................................................................................42
3.14 Chapter Summary:.......................................................................................................43
Chapter 4: RESULTS AND DISCUSSION............................................................................45
4.1 Introduction:.......................................................................................................................45
4.2 Socio-Demographic Analysis of all respondents:..........................................................45
4.3 Reliability Test:..............................................................................................................48
4.4 Descriptive Statistics:.....................................................................................................49

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4.5 Correlation Analysis:.....................................................................................................50
4.6 Inferential Statistics:.......................................................................................................53
4.7 Discussion:.....................................................................................................................57
Chapter 5: CONCLUSIONS AND RECOMMENDATIONS.................................................62
5.1: Conclusion:...................................................................................................................62
5.2 Recommendations:.........................................................................................................65
References................................................................................................................................67
Appendix..................................................................................................................................76
Questionnaire...........................................................................................................................76

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Chapter 1: INTRODUCTION
1.1 Introduction
The global commercial and organizational framework had undergone considerable
changes and dynamics over the last few decades, owing to international phenomena of
immense significance like that of Globalisation, liberalisation of trade and commerce and
technological and infrastructural framework (Ferraroand Briody2013). All these factors have
cumulatively contributed in making business and organizational scenario more global,
integrated and inclusive and interconnected (Jankalová2012).
In this context, with the increasing dynamics in the commercial operational
framework, the concept of leadership in the business organizations has also evolved
significantly, with the importance of the same being rising among the participants of the
global business environment (Wibbekeand McArthur2013). Leaders, in businesses, are
usually those who encourage and persuade their team members to work in such a way that the
organization targets and goals are reached within specified times and the welfare of all the
participants of the organizations are also maximised (Raeet al. 2012). Over the years, owing
to dynamics in the global commercial environment, the notion of leadership in business has
also become increasingly complex and different types of leadership structures and styles have
also evolved in this aspect, depending upon the needs of the situations (Birdand
Mendenhall2016). This is primarily because of the varied and multilateral impacts of the
presence of an efficient leadership structure in an organization. As highlighted by Yıldız,
Baştürkand Boz (2014), the presence of a good leadership leads to creation of morale and
inspiration for the employees, thereby motivating them to perform better. Robust leadership
structure also encourages free flow of ideas and organization of operations and strategic
implementations, together which leads to higher profitability and better reputation of the

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organizations. There are different leadership styles, recognised in the contemporary business
framework, of which the increasingly popular styles are those of transactional and
transformational styles. While transactional leadership style of leadership focuses on
organization, supervision and performance of the companies, transformational leadership
focuses on working for identification of areas for change and creation of vision for
implementing changes through inspiration from the leader of the organization.
Keeping this into consideration, the concerned research explores the different forms
of leadership, specifically the transactional and transformational forms of leadership, thereby
comparing the attributes and the impacts of the same on the performance, satisfaction of the
employees and the overall performance of the organizations, specifically focussing on the
management operations of the HtooGroup of Companies, a Burmese holding organization
located in Myanmar. The study tries to analyse which form of leadership, between
transactional and transformational, is more relevant and effective for the concerned company.
1.2 Research Background
As discussed above, the Htoo Group of Companies, being a Myanmar holding
company, was established in 1900 and invests in diverse fields like that of construction,
trading, hotels, aviation, resorts, financial services, agriculture, food and beverage as well as
lifestyle and entertainment businesses. With an employee strength of more than 40,000
people, the company currently generates an average revenue of nearly 65 million USD and
has a number of subsidiaries, venturing in different fields of the country (Htoo.com 2018).
All these factors and the overall growth and the long-term sustainability of the concerned
organization depend considerably on the leadership structures of the same and the behaviour
and activities as well as the leadership strategies taken by the leaders in the organization
(Minand Kudo2014).

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The Htoo Group of Companies, expanding impressively over the years, has a complex
and vast organizational structure and operational framework. The organization can also be
seen to be showing the presence of different leadership styles within its operational domain
(Ford, Gillanand Thein2016). The founder and chairman of the Htoo Group of Companies,
Tay Za, being one of the primary leaders of the organization is known for his charismatic
style of leadership which has considerable influence on the actions, activities and the
behaviours of the employees. Other leaders of the Htoo Group of Companies can also be seen
to be adopting transformational leadership structure to inspire and influence their respective
team-mates and to encourage them for working towards the achievement of the common
organizational goals (Foster2013). However, in the contemporary period of industrial
complexities and increasing competitiveness, the concerned company can be seen to be
facing several issues of concern, including that of problems with diversification of its
business portfolio, maintaining coordination among different departments, competing with
global rivals and identifying strengths and weaknesses as well as opportunities and threats in
the coming years. This in turn, indicates towards the need to analyse the leadership structures
in the organization and their implications, thereby examining the form of leadership which, in
the contemporary period, will be best suitable for the same.
The business organization, named the Htoo Group of Companies, being a highly
diversified and expanding business, operating in different fields and industries in Myanmar,
experiences considerable dynamics and competitions in their operational framework. The
company also employs huge number of employees in different domains with diverse
experiences, attitudes and attributes, managing whom is one of the most challenging tasks in
the operational framework of the concerned organization, for which it is of utmost
importance for the organization to choose the style of leadership which will provide best
result for the company, in the aspects of maximising the satisfaction, motivation,

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performance of the employees and of that of the maximisation of the overall performance of
the organization in the long run (Yukl 2013).
Keeping this into consideration, the concerned research focusses on analysing and
comparing the impacts of transactional and transformational forms of leaderships on the
aspects like that of performance and job satisfaction levels of the employees working for the
concerned organization as well as on the overall performance of the organizational itself, in
the contemporary period of expansion and business diversifications of the concerned
organization.
1.3 Significance of the Research
In the contemporary period of global integration of marketplaces and clienteles and
increasing level of competition among businesses as well as increasing dynamics in business
scenarios of almost all types of industries, it has become immensely crucial for the companies
and organizations across the globe, to ensure efficiency, effectiveness and competency in
their operational framework (Caldwellet al. 2012). For instance, the Htoo company, can be
seen to be operating in a global marketplace and caters to a global clientele, which is full of
diversities. In this process, the company not only faces diversified demand patterns of the
customers but also experiences considerable competitions from the similar companies from
different parts of the globe and in Myanmar specifically. In this context, the employees play a
considerable role as they are the backbone of any organization and key contributors to the
performance, profitability and sustainability of the same both in the long run as well as in the
short run.
One of the key factors influencing the behaviours, activities as well as performance of
the employees and also the level of motivation and the level of job satisfaction of the
employees in their respective companies is that of the leadership structures present in the

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same and the personal attributes of the leaders under which the employees work in an
organization (Bolden2016). In this context, it becomes essential for the business
organizations to explore, analyse and determine the style of leadership which can benefit the
same most optimally and the structure of leadership which can have maximum positive
influence on its employees.
Keeping this into consideration, the concerned research, exploring the impacts of the
different forms of leadership forms on the employees, their performance, satisfaction level as
well as overall organizational performance of the Htoo Group of Companies, can have
considerable significance for the organization itself. With the help of the findings of the
concerned research, the organization into consideration, can device and implement proper
and appropriate forms of leadership strategies, design and structures, thereby increasing the
productivity and performance of the employees and raising the level of job satisfactions,
thereby improving the overall organizational performance in the long run.
Rationale of the research
The concerned research, focussing on exploration and comparison of different
leadership styles present in the global scenario, especially the transactional and
transformational leadership styles and also on studying the relevance and comparative
advantages as well as limitations of the same in the operational framework of the Htoo Group
of Companies, tries to find the better and more efficient style of leadership subjective to the
concerned company (Simola, Barling and Turner 2012). This in turn, if done appropriately,
can have immense positive implications on both the performance of the employees and their
job satisfaction level as well as on the overall performance of the concerned organization,
thereby making the concerned research significant and purposeful.

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1.4 Research Aims
The concerned study primarily aims to investigate the impacts and implications of
different leadership styles, specifically the transformational and transactional structures of
leadership on the operational framework of the Htoo Group of Companies, especially in the
aspects of employee performance, job satisfaction of the employees and also the overall
performance and efficiency of the company in the short run as well as in the long run. The
research also aims to compare and determine the style of leadership which is appropriate for
the concerned company and its operational framework in the contemporary period, when the
same has been consistently expanding and diversifying both its investment portfolio as well
as its businesses.
1.5 Research Objectives
The objectives of the concerned study can be seen to be as follows:
 To explore the differences between the two primary forms of leadership styles, the
transactional style and the transformational style
 To analyse the comparative advantage of transactional style over transformational
style
 To analyse the comparative advantage of transformational style over transactional
style
 To determine the leadership style among these two, which would be better and more
efficient for the concerned business organization, the Htoo Group of Companies, in
the contemporary period
 To observe and evaluate the impacts of these two forms of leadership styles on the
different organizational aspects of the concerned company, especially on the job
performance of the employees, their overall level of job satisfaction as well as the
performance of the concerned organization as a whole